The Dow Jones Industrial Average (DJIA) skipped sharply higher out of the gate this morning, logging a triple-digit gain following a heavy round of economic data and as Dubai debt worries fade into the background. Heading up the list of economic reports, the Institute for Supply Management (ISM) reported that business at U.S. manufacturing firms improved in November for the fourth straight month, but at a slower pace than in October. The ISM manufacturing index fell to 53.6% from 55.7% in October. Economists were looking for the index to pull back to 55% in November.
Meanwhile, the Commerce Department reported that outlays for U.S. construction projects were flat in October, as a gain in spending on housing was offset by a drop in spending on public works. Construction spending has not risen since April. Outlays are down 14.4% compared with a year earlier.
In other news, the National Association of Realtors reported that signed sales contracts on existing homes in the United States rose for the ninth straight month in October. The pending home sales index rose a seasonally adjusted 3.7% in October from September. Furthermore, the index is up 31.8% compared with last October.
Finally, chain-store sales for the week ended Nov. 28 rose 3.1% from the year-earlier period, according to a survey released by the International Council of Shopping Centers (ICSC) and Goldman Sachs. On a week-over-week basis, sales fell 0.1%. "Electronics and online shopping were the big winners during the launch of the post-Thanksgiving holiday season," said Michael Niemira, ICSC's chief economist.
Checking in on stocks, Clearwire Corp. (CLWR: sentiment, chart, options) has soared more than 6% this afternoon following an upgrade from "sell" to "neutral" at UBS, with the broker doubling its price target to $6. "We have been concerned about Clearwire's ability to finance its roll-out and the size of the WiMAX opportunity given the expected deployment of LTE-based services by Verizon and AT&T. The capital raise largely eliminates the funding risk while likely getting Clearwire running in additional markets sooner than expected," the broker said.
Elsewhere, Barrick Gold Corporation (ABX: sentiment, chart, options) reported that it has completed the elimination of all of its gold hedges and now has full leverage to the gold price on the industry's largest gold production and reserves. In September, Barrick announced its plan to eliminate all of its gold hedges within 12 months. "Our positive view on the gold price led us to accelerate the elimination of these contracts ahead of the schedule we had established," said Aaron Regent, Barrick's president and chief executive officer. "With their elimination we no longer have any gold price related mark-to-market exposure and will now fully benefit from increases in the gold price."
The Dow Jones Industrial Average (DJIA – 10,475) has soared more than 130 points, or 1.27%, this afternoon to tag an intraday high of 10,478.23. Of its 30 components, only American Express (AXP) and JPMorgan Chase (JPM) are in negative territory. On the other hand, some of the biggest gainers include Caterpillar (CAT), IBM (IBM), and 3M Company (MMM).
Meanwhile, the S&P 500 Index (SPX – 1,108.98) has soared more than 13 points, or 1.21% today, and the Nasdaq Composite (COMP – 2,174.73) has jumped 30 points, or 1.41%.
Commodities are also putting in a strong session. At last check, the price of gold was up $15, or 1.23%, at $1,197 an ounce. Meanwhile, the price of crude oil is at $78.77, up $1.48, or 1.92%.
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